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TTML Q3 loss at Rs 527 crore; firm says Tata Sons to infuse funds

Total income for TTML in October-December fell by about 37% on year to Rs 419.36 crore.

, ET Bureau|
Last Updated: Feb 02, 2018, 07.31 PM IST
Total income for TTML in October-December fell by about 37% on year to Rs 419.36 crore.
MUMBAI: Tata Teleservices Maharashtra Ltd. (TTML) widened its net loss for the December-ended quarter to Rs 526.69 crore compared to Rs 343.39 crore, in the same period a year ago, hurt by a restructuring cost besides lower revenue from operations amid subscriber losses.

On a sequential basis however, the listed unit of Tata Teleservices (TTSL)’s losses narrowed from Rs 8,194.67 crore because of the lack of exceptional expense it had recorded in the September end quarter.

TTML said for the second quarter of FY18, the telco had recorded Rs 7708.63 crore towards impairment of loss on its consumer mobile business assets (CMB), based on assessment of its recoverable value.

Bharti Airtel last year decided to buy TTSL’s consumer mobile business on a cash-free, debt-free basis, helping the Tata Group telecom company shed a business which has been making losses for several years now. The deal is going through regulatory approvals.

Total income for TTML in October-December fell by about 37% on year to Rs 419.36 crore. Its shares closed at Rs 6.79 a piece, down by 2.44% on the BSE.

The company recorded a restructuring cost of Rs129.26 crore in the just ended quarter, but also reported write back of the impairment charge of Rs33.60 crore, to have a net exceptional expense of Rs95.66 crore, dragging quarterly net profit.

The operator in its regulatory filing added that the promoter group plans to “infuse funds directly or indirectly through Tata Teleservices, which together with the proceeds of monetization of certain assets will be used to meet its financial obligations, as and when they fall due”.

ET had earlier written that Tata Sons, the holding company of the Tata Group, would raise about $1.8 billion in fresh loans to extinguish debt in a telecom entity. The report said that Tata Sons would launch a $1.5-billion overseas borrowing programme in February, and the proceeds would be used to whittle down debt at Tata Teleservices. The group is in talks with leading global financiers - Citigroup, Standard Chartered, Barclays, ANZ, Bank of America and DBS, and Mitsubishi - and will raise the money in a couple of weeks, said the report.

Separately, recent media reports said that a management consortium backed by TPG Capital had offered at least $1 billion for the fibre assets and related businesses owned by TTSL.
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